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  • Sleep apnoea specialist Oventus Medical (OVN) has received firm commitments to undertake a $5 million placement
  • The placement will be undertaken in two phases with phase one set to issue 23.57 million shares to institutional and sophisticated investors at 12 cents
  • Phase two, which is subject to shareholder approval, will see 18.56 million ordinary shares also issued at 12 cents
  • The price of 12 cents represents a 27.3 per cent discount to Oventus' share price of 16.5 cents on May 5
  • Once the placement has been completed, Oventus will undertake an entitlement offer to raise a further $5 million
  • Participants will be able to subscribe for one new share for every 4.4 held
  • Oventus will use the funds to strengthen its balance sheet and allow it to enhance its manufacturing, operating, logistics, sales and marketing activities
  • Oventus has ended the day 18.2 per cent in the red with shares trading at 13.5 cents

Sleep apnoea specialist Oventus Medical (OVN) has received firm commitments to undertake a $5 million placement.

The company entered a trading halt on May 5 but did not disclose how much it intended to raise or what it would use the funds for.

The placement will be undertaken in two phases with phase one issuing 23.57 million ordinary shares to institutional and sophisticated investors at 12 cents to raise around $2.8 million.

Phase two, which is subject to shareholder approval, will see 18.56 million ordinary shares issued at 12 cents to raise the remaining $2.2 million.

Furthermore, phase two will see company directors invest a minimum $200,000.

This price of 12 cents represents a 27.3-per-cent discount to Oventus' share price of 16.5 cents on May 5 and a 30.6-per-cent discount to the five-day volume-weighted average price.

Shares under phase one will be issued on May 14, while shares under phase two will be issued on June 29.

Once the placement has been completed, Oventus will undertake an entitlement offer to raise a further $5 million.

Participants will be able to subscribe for one new share for every 4.4 held with shares also priced at 12 cents.

The entitlement offer will close on June 7 and shares will be issued on June 15.

Participants in both the placement and entitlement offer will also receive one free attaching option for every two shares subscribed for, exercisable at 24 cents with expiry two years from issue.

Oventus will use the funds to strengthen its balance sheet and allow it to enhance its manufacturing, operating, logistics, sales and marketing activities.

"The launch of the virtual Lab in Lab program and direct-to-consumer model has been a key development for Oventus over the past two quarters, supported by the strong growth of telehealth, which is a lead indicator of our revenue growth," CEO Dr Chris Hart said.

"Both models offer Oventus a reduced cost base and significantly increased scalability, meaning we feel well positioned to deliver significant upside over the months ahead," he added.

Oventus has ended the day 18.2 per cent in the red with shares trading at 13.5 cents in a $26.11 million market cap.

OVN by the numbers
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